Evening Star Newspaper, January 25, 1942, Page 24

Morgenthau Demands Closing of Loopholes In New Tax Law Says Tux-Fre.e Bonds Give Wealthy Refuge From Income Levies By the Associated Press. CLEVELAND, Jan. 24—Secretary of the Treasury Morgenthau de- clared today “the very first billion” of President Roosevelt's goal of $9,000,000,000 in new revenue should be obtained by closing remaining loopholes in our tax system. . Blasting tax-exempt State and municipal bonds and other “glaring examples” as dangerous “to the unity we need to win this war,” Secretary Morgenthau pledged him- self to “fight for the speedy removal of any defects in the tax laws which may injure our national morale. “This is not the time for me to discuss the new tax p ,” he told Cleveland’s City Club. “The President has said that we must have $9,000,000,000 in new revenue. We have no more right to fall short of that goal than we would have to fall short of the President’s an- nounded goal of 60,000 planes and €5,000 tanks in 1942.” Refuge for Wealthy. Delivering his first address in more than a month, Mr. Morgen- thau asserted — apparently with presidential approval —that tax- free securities provide “wealthy tax- payers a possible refuge, not from some income tax, but from all in- come taxes. s “No matter how much money may be needed for the war, no matter how high the tax rates may be for others, a taxpayer is not obliged to contribute anything in this hour of his country’s peril, if only he can afford to lay his hands upon & sufficient amount of tax-exempt securities. * * * It is high time, In my opinion, to tax the income of State and municipal securities—not only the income of future issues, but also the income from those Issues now outstanding.” He declared this loophole cost the Treasury, at present tax rates, about $200,000000 a year; that another $55,000,000 escaped in the nine States having the community prop- erty system; that separate income tax returns for husband and wife caused a $260,000,000 leak, and that | $80,000,000 was lost because under | the income tax law’s ‘“percentage Appointment of United States | Commissioner Needham C. Turnage | as chairman of the committee ar- depletion provision” owners of mines and oil wells are permitted to de- duct for depreciation “far more than the amount of money” they put into the property. Other Glaring Examples. “I have pointed out the most glar- ing examples of these loopholes,” Mr. Morgenthau said, “but there are others” which cause almost a billion dollars of taxes annually to be thrown “onto the shoulders of the rest of us” because a few thou- sand individuals escape their fair share. “It has been difficult until now to correct our tax laws because tax- | payers have been too few and too indifferent. Until the great body of American taxpayers becomes thor- oughly aroused to. the injustices which have been left on the statute books year after year, we cannot expect to correct the laws. The | remedy lies in your hands as tax- payers.” Secretary Morgenthau indicated in an interview that United States Defense bonds will not be renamed “war bonds.” “We gave that a lot of thought,” he told reporters, “but we had a poll taken which showed two-thirds of the people prefer to have them called Defense bonds. They've been going so well that perhaps we have become a little superstitious about changing.” Drug Stores fo Collect 0ld Metal Containers All drug stores of the Nation, in- cluding several hundred here, have been called on to assist in collect- ing vital defense metals by a joint comitttee of the Packaging Insti- ranging for more than 10,000 or- | phan, underprivileged and crippled | children to see the Shrine Circus | scheduled February 9-14 at Uline | Arena as guests of Almas Temple | was announced yesterday by How- ard P. Foley, potentate and direc-| tor. | One of Mr. Turnage's first moves | was to give tickets to 72 youngsters | at the Masonic Eastern Star Home; |62 at St. Rose’s Technical School; | 100 to the Christ Child Society; 100 | | to the Northwest Settlement House; | 200 to the Washington Welfare As- | sociation and 50 to the Central| | Union Mission. ‘The German Orphan Asylum will | be given 50 tickets, Mr. Turnage stated, and 50 will be sent tp the Baptist Home for Children of West Cedar Lane, Bethesda. The Salvation Army will receive L Street Service (‘jub ‘ In Membership Drive The Soldiers, Sailors and Marines | Club at 1015 L street N.W. is con- | ducting & membership drive in the | District to help maintain its stand- ’lne-sthennhnqphee!nthe}ll- tion’s Capital for enlisted men to turn to while, away from camp on | leave. ’ A bronze plaque will be placed in | the club’s canteen on February 4 | in appreciation of the establishment of the canteen by the Woman’s Na- | | tional Democratic Committee last | June. The club has been in operation for 45 years. Its old buildings were | remodeled last spring with provi- | | sion for 180 beds to accommodate | service men. Showers, a library and gameroom also were included in the 100, the Friendship House Asso- ciation, 100; the Juanita Kaufman Nye Council, 50; Barney Neighbor- hood House, 75, and Georgetown Children’s Home, 20. ‘This is only a partial list of the hundreds of institutions in Wash- ington and nearby towns from which children will be invited dur- ing the afternoon circus perform- ances, the first of which is sched- uled for Wednesday, February 11. Matinee shows for the under- privileged also are slated for Thurs- day, Friday and Saturday. Arrangements to transport the children to and from the circus and provide them with peanuts, chewing gum and pop corn also are being made. More than 5,000 service men from nearby; camps also will attend as guests of the Shriners. | Featired “performer of the SOJ’ act circus will be Clyde Beatty, who will bring 30 of his lions from Fort Lauderdale, Fla. Tickets are on sale at Almas Temple, 1315 K street N.W. ALL CAN'T CHILDREN GET TICKETS TO SHRINE CIRCUS—United States Commissioner Needham C. Turn- age, chairman of the committee arranging for more than 10,000 underprivileged children to see the Shrine Circus at Uline Arena February 9-14, and Howard P. Foley, Almas Temple potentate, are shown distributing tickets to a group of children at the Masonic Eastern Star Home yesterday. Children in the picture are, left to right, front row: Frank Fay, Herb Fay, Miles Znameeneck, Buddy Hunter and Doris Cohill; back row, Bob S8pear, Audrey Wilkins, Willilam White, Frances Znameeneck and Clarence Balderston. Needy Children Given Tickets [fead o TNCA. in Eg To Shrine Circus by Turnage —=Star Staff Photo. To Give Address Here Wilbert B. Smith, in charge of Y. M. C. A. work in Egypt, is sched- uled to deliver four addresses here, the first at 5:30 p.m. tomorrow at a | dinner meeting of the Board of Managers of the Young Men's Chris- | tian Association in the building at 1736 G street NW. Other scheduled speeches by Mr. Smith include one at 12:30 pm. Tuesday at s luncheon mpeeting of the Civitan Club in the Mayflower Hotel, another at 12:30 p.m. Wed- nesday at a World Service luncheon at the Central “Y” on G street and | a final address on Thursday at & luncheon meeting of the Cosmopoli- tan Club in the Hay-Adams House. Mr. Smith’s subject will be “Egypt in the Present World Conflict.” YOU ean n-'-d‘c ERUIT TRrs i . f,‘» ‘”, n BrOwe A 0 ice Catalog covers over 800 va- rieties of new im- FLY BOMBERS War Between Soviels And Japs Inevitable, Ex-Envoy Declares Red Army Confident of Crushing Germany in Year, Cripps Says By the Associated Press. LONDON, Jan. 24—8it Stafford Oripps, returning from 18 months | dr a3 Britain's ambassador to Moscow, predicted today that war between R._sia and Japan was inevitable and said the Red Army was confi- dent of crushing Germany by next fall and winter. And, he said, the Russians, wih portation facilities have been given over to war uses and in others blasted buildings give poor shelter from the bitter cold. ‘The former Ambassador said Rus- sians generally were friendly toward the British and genius but, as a rule, were poarly informed on af{airs abroad. to supply them—not only doubled production in the Urals since last June, but the resumption of plants Write or cell for fres booklet ST 2o whin Greenhill Institute 3145 16th St. N.W. Phone Day or Night—CO. 4754 In mmguu 1 quarters cal qi it is :flkvedmm Sir Stafford may lunge e parliamen t over changes in Britain's t::xy g'gll- net, but his reference to the gen. moved plecemesal from the front ”I _“lul to swimming N R S T at Pulestine beaches, the Auitralian | Join the United States Coast Guaid Comlorts Pund having provided four ' today. A PRODUCT OF BALOWIN ota It is, first of all, a fine piano. It was designed by Baldwin engineers. Built by Baldwin craftsmen. Styled by Baldwin designers. It is a superb musical instrument, beautiful, up-to-date and small enough to fit snugly into the most modern surroundings. The Baldwin-Built Acrosoftic is available in ten beautiful models, now on display in our show rooms. HUGO WORCH 1110 G St. N.W. NAt. 4529 FOR VICTORY BUY DEFENSE STAMPS AND BONDS renovation. Service orchestras furnish music every Saturday night for dances, which last until 11:30 o’clock. Re- freshments are served by wives of fficers, as are all meals. The drive is conducted from the club’s headquarters. Mrs. Raymond Fowler is president of the club. tute of America and the Collapsible Tube Manufacturers’ Association. Spokesmen for several of Wash- ington’s large chain drug stores said | yesterday they had been informed of the plan and expected to give full o co-operation by placing receptacles in their stores to collect tooth paste, | ;h’avina crk:ax}? and ot';kxer :‘dm co!n- | il i T ainers which may be r or - B P their recoverable tin content. PIuYs Will Aid China It is estimated users of tube prod-| The Red Gate Players of New ucts throw away from 20 to 25 tons | York will present Chinese shadow | of collapsible tubes a day. Approxi- | plays at 8 pm. Wednesday at the mately 6,000 tons of tin are used in | Sidwell Friends School for the bene- | tubes, of which 85 per cent is rep- | fit of United China Relief. Sponsors | resented in drug store products. Re- | of the event include Mme. Sao-Ke turn of the used tubes will help to | Alfred Sze, Mme. T. V. Soong, Mme. assure a continuing supply of tin | T. S. Shih, Mme. Shih-Ming Chu until other sources for the metal land Mrs. Ray Perrin McNair, who are opened up, it was explained. | spent much of her life in China, | s Wonen Kot | PSTBACKACHE? Red Cross Women Knit Don't be discouraged when your For Destroyer Crew X3 1 nagging, painful backache comes e pearge A Eichoha D of from 3 functional kidney dis- e evy ase Branch o e Cross, announced yesterday that farbance A1 oy st for permission had been received to sponsor a gift of knitted articles to the crew of the destroyer U. S. S. Livermore. Mrs. Finch said she had directed the 338 knitters of the branch to work on sweaters, socks and mittens for the 225 men of the destroyer. marvelous relief s what doctors all diuretic help. Try time- groyen. easy-to-take Gold edal "Capsules. Only 334, Must help—or moaey back ! GOLD MEDALE CAPSULES W “They were designed by Bell Telephone Laboratories and made by Western Electric, maker of Bell Telephones. “And what a revelation they are! Now that 1 ean hear clearly and easily, I realize how much Ive been missing. I feel like a new man, thanks 10 my new ears.” ¥ you, or any of your friends or relatives, have impaired hear- ing, read page 39, of the January Slst isene of SATURDAY. EVENING POST, then call or visit us today, _ | WALTER BROWN | 215 17th 8t. N.W. RE. 1060 BUT EVERYONE CAN BUY U. S. DEFENSE BONDS Invest in Victory . . . Start purchasing Defense Bonds and Stamps today. You may buy them at this office or at any other Building Association, Sav- ings and Loan Association, Bank or Post Office. PERPETUAL BUILDING ASSOCIATION Eleventh and E Sts. N.W. | Washingten, D. C. | PLEASE SEND LITERATURE ouy_____ Mot dabodh o monamem s T¢h AND H STS. N.W. JgN AR b 4 | VAR Easy Credit Terms! UP TO 18 MONTHS TO PAY 8-Piece Maple Bedroom Ensemble A charming Colonisl design in rich Includes full Bed, Chest of also included, Simmons Coil Spring, Maottress, pair of Feather Pillows end Vanity Bench. Pay Only 75c Weekly at THE NATIONAL! room. Consists of tepestry coversd sefe-bed thet opens to @ full size or twin beds, Cogswell Chair, Occasionel Cheir, two 8-Piece Studie Couch Ensemble Everything complets to give you @ End Tebles, Coffes Table, Bridge 5 Lomp ond ¢ Table Lamp. double duty living Only ‘78c Weekiy—at THE NATIONAL! LIVIN G ‘Room Sv.u-ttfJ WAS NOW $94.95 $63.77 2-pe. Kroshler Living Room Suite_—.___119.95 86.70 13995 109.60 2-pc. Modern Living Reom Suite 11495 84.85 2-pe. Kroshler Sofa-Bed Seite___. ) BEDROOM. ‘f'slfi.s;g*f WAS NOW $69.95 $44.80 9995 61.85 29.95 62.60 3-pc. Maple Suite, .Colonial Desiga 3-pc. Modern Suite, Walnut Veneers.. 3-pe. 18th Century Bedroom Suite 3.pc. Modern Suite, Walnut Veneers 189.95 124.75 3-pc. Mople Suite, “Virginia Home"_..___119.95 82.88 3.pc. 18th Cantury Suite, Mahoggny Veneer, 13495 96.65 3-pc. Limed Ock, Modern Suire. 134.95 102.70 WAS NOW 7-pe. Modern Dinette, Walnut Finish $94.95 $69.88 9-pc. Dining Room, Walnut Finish_____._ 139.95 92.65 9-pc. Dining Room, Walnut Veneers. 164.50 119.75 7-pe. 18th Century Dinette, Mahogany Finish 119.95 86.85 10-pe. 18th Contury Suite, Mahogany Veneer 189.95 133.75 10-pc. Modern Dining Room Swite .__ 21495 152.65 10-pe. 18th Century Dining Room Suite.. 329.50 242.50 WAS NOW $2.19 2.88 8.65 4.29 4.49 39 Console Table, Walnut Finish Butterfly Tables, Walnut Finsh__. Commodes, Walnut and Mahogeny. Cocktoil Table, Glass Top-oeemaeeeceaeen- 7.95 Telephone Set, with Chair. 795 Magazine Rock, Welnut Finish ... 98 Lemp Teble, Welost Finish____. - 329 $1.89 Valuet End Table 99¢ ll.,‘ Bardweqy 7, Puilt or